British manufacturing growth climbed to a two-and-a-half-year high last month, fuelled by new orders from both home and overseas and adding to signs the economy ended 2016 strongly, a survey showed on Tuesday.
The Nikkei India Manufacturing Purchasing Managers' Index fell to 49.6 in December, the first time it hit below the 50-mark in 2016, from 52.3 in November.
However the figures for the services sector have come in at 54.5 in December, down from November's 54.7.
The rate of expansion in job creation accelerated for a third successive month at its fastest pace in 19 months. "Notably, the rate of output growth accelerated to a 71-month high, with a number of panelists commenting on stronger underlying demand and new client wins", the Caixin data statement said. A reading below 50 implies contraction while one above 50 indicates expansion.
Official data showed manufacturing activities, inflation, foreign trade, fixed-asset investment, and industrial production all rose in November.
United States manufacturing conditions smashed expectations in December, according to an important indicator, as data continue to show an economy in rude health ahead of the Presidency of Donald Trump. Cash flow issues reportedly impaired manufacturers' ability to work on outstanding business. "Cash flow issues among firms also led to reductions in purchasing activity and employment", said Pollyanna De Lima, economist at IHS Markit.
More notably, job creation in the sector for December was the slowest since August past year.
An economic recovery and rising crude oil prices drove up costs, with the price sub-index accelerating to 74.1, putting more pressure on companies to raise prices to pass on the burden, the report said.
Raw material prices increased for six months in a row to the highest level this year, while transportation costs jumped five months in a row, further eating into manufacturers' profit, said Zhao.